Mainland stocks have bounced back from the biggest drop in a decade as the government said it has no plans to introduce a capital gains tax on stock earnings, the South China Morning Post reported. While other Asian markets, including Hong Kong, continued the slide triggered by the Shanghai Composite Index's 8.84% drop on Tuesday, the index rose 3.94% yesterday to close at 2,881.073 points. The plunge in global shares reflected concerns that the Chinese and American economies could be in trouble. Investors were worried by comments from former US Federal Reserve Chairman Alan Greenspan, who said the US might be headed for a recession by year-end. There had also been speculation that Beijing would impose a capital gains tax or other measures to rein in the surging market and economy, which state-owned press reports promptly denied.
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